Market Segmentation, Targeting, and Positioning

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Market Segmentation, Targeting, and Positioning

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Chapter
Market Segmentation, Targeting, and Positioning

• Chapter 6

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www.dell.com
How does Dell segment the market for computers?
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Objectives

• Emphasize benefits of target marketing
• Describe segmentation and targeting
• Overview basic targeting strategies
• Discuss positioning

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Segmentation Segments
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Selecting Relating to Customers
Segmentation

• Objective identify understand customer
  characteristics

• Identify factors to segment market
• Determine potential of each segment

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Selecting Relating to Customers
Segmentation
Target Marketing

• Objective Selecting customers allocating
  resources

• Criteria for selection
• Segment strategy

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Selecting Relating to Customers
Segmentation
Target Marketing

• Objective Establish positive image relative to
  competitors

Positioning

• Understand customers
• Determine image

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How do these ads demonstrate that the companies
understand the customer?
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Segmentation Variables
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Segmentation Variables

• World Region
• Economic stage
• Nation
• City
• City size density
• Region
• Climate
• Zip code

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Segmentation Variables

• Gender
• Age
• Income
• Family size
• Family life cyle
• Occupation
• Education

Demographic
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Segmentation Variables

• Religion
• Race
• Social class

Diversity
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Segmentation Variables

• Lifestyle
• Personality

Psychographic
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Which segmentation variable is employed in this
ad? Within that variable, which category does
the ad target.
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www.future.sri.com
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Segmentation Variables

• Readiness
• Ability experience
• Loyalty
• Media shopping habits
• Usage
• Rates

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Think About It!

• Develop some segments for a dress shirt company.

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Segmentation Methods

• Take-down

• Build-up

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Selecting Segments

• Size Growth
• Competition
• Cost Efficiency
• Compatibility

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Think About It!

• Which do you think are the best segments to
  target for your shirt company?

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Who is being targeted in this ad?
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Target Marketing Strategies
Undifferentiated
Concentrated
Differentiated

• Mass Market
• One size fits all

• Well defined mkts
• Different approach for each

• Single mkt
• One approach

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• In this ad, is
• Cybertunes using an
• undifferentiated,
• differentiated, or
• concentrated targeting
• strategy?

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Target Marketing Strategies

• Niche Micromarketing
• Mass Customization

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Positioning Steps
Develop supporting marketing mix
Determine product positioning
Identify ideal position
Locate brand relative to others
Map key dimensions
Identify buyers key attributes/characteristics
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Think About It!

• What are some different ways you could position
  your dress shirts?

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Positioning Map
TV talk shows
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Bases for Positioning

• Benefits or attributes
• Price/Quality
• Usage occasion
• User
• Comparison
• Product class
• Country of origin

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Bases for Positioning
On which basis is Jaguar positioning itself in
this ad?
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Position Business Products
Commodity
Specialty
Differentiated
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Think About It!

• If there are no competitors in your market, is
  positioning still useful?

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Review

• Emphasize benefits of target marketing
• Describe segmentation and targeting
• Overview basic targeting strategies
• Discuss positioning